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A major influence on one's purchasing habits and consumer behavior is the social class in
which one finds him or herself. Social class is considered an external influence on consumer
behavior because it is not a function of feelings or knowledge. Social class is often hard to
define; in fact, many people dispute the existence of social classes in the United States.
Usually, however, people are grouped in social classes according to income, wealth,
education, or type of occupation. Perhaps the simplest model to define social class is a threetiered approach that includes the rich, the middle class, and the poor. Other models have as
many as a dozen levels. People in the same social class tend to have similar attitudes, live in
similar neighbourhoods, dress alike, and shop at the same type of stores.
Influence on Consumer Behavior
Social class can have a profound effect on consumer spending habits. Perhaps the most
obvious effect is the level of disposable income of each social class. Generally, the rich have
the ability to purchase more consumer goods than those with less income, and those goods
are of higher quality . There is also a distinction in the type of goods purchased. For example,
the upper class tend to be the primary buyers of fine jewellery and often shop at
exclusive retailers. The lower class, in contrast, are much more concerned with simply getting
by; they focus more on necessities.
Social Stratification, the division of members of a society into a hierarchy of distinct social
classes, exists in all societies and cultures.
Social class usually is defined by the amount of status that members of a specific class
possess in relation to members of other classes. Social-class membership often serves as a
frame of reference for the development of consumer attitudes and behaviour.
The measurement of social class is concerned with classifying individuals into social class
groupings. These groupings are of particular value to marketers, who use social classification
as an effective means of identifying and segmenting target markets.
Subjective Measurement
Reputational Measurement
Objective Measurement
Composite variable indexes such as the index of status characteristics and the socio economic
status score, combines a no. of socio economic factors to form one overall measure of social
class standing.
Class structures range from two class to nine class systems. A frequently used classification
system consists of 6 classes: Upper upper, lower Upper, upper middle, lower middle,
upper lower, and lower lower classes.
Profiles of these classes are reflected in differences in attitudes, in leisure activities, and in
consumption habits. That is why, for the marketers, social class based market segmentation is
of high importance.
Geodemographic clustering is a technique that combines geographic and socio economic
factors to locate concentrations of consumers with particular characteristics. Particular
attention currently is being directed to affluent consumers, who represent the fastest growing
segment in our population; however, some marketers are finding it extremely profitable to
cater to the needs of non-affluent consumers.
Research has revealed social class differences in clothing habits, home decoration, leisure
activities, as well as saving, spending and credit habits.
Thus, smart marketers tailor specific product and promotional strategies to each social-class
target segment.
Members of the same social class tend to share common values, beliefs, and behaviours that
unite them (as opposed to simple demographics).
Membership in a higher class generally leads to greater influence within the workplace,
organizations, and society as a whole.
Lower-Class people are less likely to subscribe to newspapers than are members of the
middle class.
Choice of magazine is likely tied to education and reading ability
Lower-Middle Class: Readers Digest, Ladies Home Journal
Upper-Middle Class: Time, The New Yorker, etc.
Broadcast media choice also varies by social class
Upper-middle class: NBC vs. lower-middle class: CBS
Lower-middle class: more responsive to audio-visual forms of communication